ExlService Holdings Stock

ExlService Holdings, Inc. (EXL) is a leading data analytics and digital operations and solutions company. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence (AI) and machine learning (ML), the company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries, including insurance, healthcare, banking and financial services, media, and retail, among others.

The company delivers data analytics and digital operations and solutions to its clients, driving enterprise-scale business transformation initiatives that leverages its deep expertise in advanced analytics, AI, ML and cloud.

The company’s data-led value creation framework enables better and faster decision making, leveraging its end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows. The company embeds digital operations and solutions into clients’ businesses and introduces its data-led approach to transform operations with every new engagement.

The company operates through four segments: Insurance, Healthcare, Analytics and Emerging Business.

Digital Operations and Solutions

The company’s digital operations and solutions, which it provides from its Insurance, Healthcare and Emerging Business strategic business units, are focused on solving complex industry challenges, such as the insurance claims life cycle, financial transactions processing and provider and member experiences. This typically involves the use of agile delivery models to implement digital technologies and interventions like hyper-automation, customer experience transformation, advanced automation, robotics, enterprise architecture, end-to-end business function management and transformations. The company either administers and manages these functions for its clients on an ongoing basis via longer-term arrangements or project work. The company uses a focused industry vertical approach, and its solutions are designed to help its clients realize their business and innovation goals and improve their strategic competitive position.

The key differentiators and salient features of the company’s digital operations and solutions include its agile operating and delivery model, which leverages AI/ML-based content extraction, natural language processing and cloud-based operations to automate business processes and improve speed to market. The company integrates AI/ML and data on the cloud to digitally transform legacy models and support real-time insights, faster decision making and streamlined operations.

Some of the key digital capabilities embedded in the company’s digital operations and solutions include:

AI:OS: Integrated cloud-native AI solutions with deep domain expertise and process transition experience to deliver a cloud receiving center for business processes;

Xtrakto.AI: AI-driven automation of manual processing of text, image and financial data;

Exelia.AI: AI-infused experiences across multiple customer journeys and touchpoints;

Paymentor: AI-powered customer centricity and digitization in payment and collection processes; and

POS Financing: AI-powered Buy Now, Pay Later solution, reimagining an integrated and coherent sales and credit journey.

The company delivers digital operations and solutions to clients through multiple technology approaches, including using client environments, EXL platforms and leveraging third-party solutions from its partner ecosystem. Where possible, its aim is to use standardized and shared technology and operational delivery infrastructure, enabling the company to leverages technology and infrastructure investments across multiple clients.

The company’s strategic business units, through which it provides digital operations and solutions:

The company’s Insurance strategic business unit serves property and casualty insurance, life insurance, disability insurance, insurance brokers, reinsurers, annuity and retirement services companies. The company provides digital transformation and solutions and data-led operations services across the insurance industry in areas, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey and customer service using digital technology, AI, ML and advanced automation. The company provides end-to-end third-party administration for life and annuity insurance policies which includes digital customer acquisition services using a software-as-a-service (SaaS) delivery model through its LifePRO and Life Digital Suite platforms that help clients administer life insurance, annuities and credit life and disability insurance policies. The company also provides subrogation services to property and casualty insurers using business process-as-a-service (BPaaS) delivery model and its proprietary Subrosource software platform, the largest commercial end-to-end subrogation platform. Subrosource integrates with client systems, manages recovery workflow, increases recoveries and reduces costs. The company provides a suite of finance and accounting services that include high-end, data-led services, including financial planning and analysis, decision support, GAAP (generally accepted accounting principles) and statutory reporting and compliance services in addition to core finance operations. The company brings a data-led and practical digital approach to finance and accounting, enabling its clients to simplify and scale their finance and accounting processes, drive stakeholder centricity, improve controls and compliance, reduce operating costs and deliver rich data-led insights to its clients’ businesses.

The company’s Healthcare strategic business unit primarily serves U.S.-based healthcare payers, providers and pharmacy benefit managers organizations. The company combines deep healthcare domain expertise with data-led insights and technology-enabled services to transform how care is delivered, managed and paid. The company provides services related to care management, utilization management, disease management, payment integrity, revenue optimization and customer engagement directly addressing the market need for improved healthcare outcomes, patient and provider experience and access to the healthcare system in the healthcare market and optimized healthcare spend.

The company offers digital operations, software-as-a-service (SaaS) and platform services designed to serve the healthcare industry. EXL’s integrated care management offering, including its proprietary clinical data, connects payers, providers and members to increase efficiencies and effectiveness across all aspects of care management, including medical, pharmacy and behavioral health. The company’s digital operations and solutions infuse cloud, data, AI, ML, advanced analytics and robotics capabilities to improve efficiency, business outcomes and the consumer experience in healthcare across patient/member management, contracting and network management, health and care management, claims administration and business operations.

Similar to its Insurance strategic business unit, the company also provides finance and accounting services, digital transformation and advisory/consulting services for its clients in the healthcare industry.

The company’s Emerging Business strategic business unit provides data-led enterprise solutions in the areas of revenue enhancement, finance and accounting and customer experience management to clients primarily in the banking and capital markets, utilities, travel and leisure, transportation and logistics, media and communications, manufacturing, retail and business services industries. These enterprise solutions complement its domain-specific industry solutions enabling its clients to deliver superior performance.

The company’s revenue enhancement solutions include lead generation, inside sales and digital marketing, pricing, customer and marketing analytics, billing and proprietary revenue assurance solutions, helping deliver direct topline and margin impact to its clients’ business.

The company’s data-led finance and accounting services include high-end analytical services, including financial planning and analysis, management reporting, advanced forecasting and decision support, data management, regulatory reporting and risk and compliance services in addition to core transactional finance operations.

The company’s client experience management solutions that run on its proprietary CONNECx platform, help its clients improve their end-customer experience across the front, middle and back-office, integrating data flows, redesigning customer service processes and leveraging digital omni-channel platforms. To deliver these solutions, the company combines its deep domain operations expertise with advanced analytics and digital capabilities, including robotics, proprietary and partner-driven AI and ML solutions.

The company also provides industry-specific digital operations and solutions. For its clients in the travel and leisure sector, the company provides corporate and leisure travel services, including reservations, customer service and fulfilment services. In the transportation and logistics sector, the company provides its clients with freight billing, collections, claims management, freight audit, freight scheduling, supply chain management and revenue assurance services. For its clients in the banking and financial services sector, the company provides a comprehensive range of digital solutions, including residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking and investment management. For its clients in the retail sector, the company provides supply chain management services and analytical services, including merchandising, pricing and demand forecasting. For its clients in the utilities sector, the company offers digital operations and solutions related to end-to-end customer life cycle management, including onboarding and terminations, engineering field services, customer service, billing and debt management and collections.

Analytics

The company’s Analytics strategic business unit helps clients build data-led businesses using AI and advanced analytics solutions and services. By leveraging its suite of end-to-end analytics capabilities, the company aims to drive better business outcomes for its clients by unlocking deep insights from data and creating data-led solutions across all parts of clients’ businesses.

The company’s Analytics teams deliver predictive and prescriptive analytics in the areas of customer acquisition and life cycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, regulatory reporting, and data management.

The company enhances, modernizes and enrichs structured and unstructured data and use a spectrum of advanced analytical tools and techniques, including its in-house AI and ML capabilities and proprietary solutions, to create insights, improve decision making for its clients and address a range of complex industry-wide priorities, including:

Superior customer experience, driving engagement, loyalty and increasing cross-sell through a deeper understanding of consumer behavior;

Solutions for risk models, stress testing, Basel risk-weighted assets, reserves, and economic capital calculation;

ML models for fraud monitoring, loss mitigation, and implementation and execution of fraud strategies; and

Enhanced decision-making in underwriting, claims processing and policy renewal through cognitive image analytics.

The company helps its clients leverage internal and external data sources, enhance their data assets, identify and visualize data patterns, and utilize data-led insights to improve their effectiveness. The company’s Analytics services for its clients include:

Identification, cleansing, matching and use of structured, semi-structured and unstructured data available both internally to its client’s organization and externally;

Integration of data insights and predictive models into real-time, decision-making processes to drive measurable business impact;

Design and implementation of services that enable data visualization and management reporting enabling business users to segment, drill down, and filter data; and

Deployment of analytics professionals and data scientists who utilize analytics tools, cutting edge statistical techniques and methodologies in ways designed to help customers better understand their data to generate actionable business insights.

The company’s Analytics engagements span both project work and longer-term arrangements where EXL provides ongoing analytics modeling and services for a year or longer. The company utilizes its domain and industry knowledge to drive these engagements across its various competencies, including data management and cloud enablement, AI, ML and advanced analytics and insights, data-enabled marketing solutions and strategic data assets.

The company’s Analytics services support retail banking, commercial banking and investment banking and management for the banking and financial services industries; marketing analytics, clinical analytics, patient engagement and pharmaco-economics outcomes in the healthcare industry; marketing and agency analytics, actuarial, servicing and operations, customer management and claims and money movement in the insurance industry; and marketing analytics, supply chain, logistics and digital operations and solutions in the retail, media and entertainment industries.

The company’s EXLClarity platform supports payers’ and providers’ risk adjustment and quality management programs to close clinical gaps and optimize revenue, and its EXLVantage platform offers robust population health analytics that can be leveraged by payer and provider customers to drive insights and associated actions for improved outcomes in quality and efficiency performance for care and network optimization. In addition, the company’s population health analytics models can be leveraged with its campaign management and marketing analytics to support member acquisition and clinical program intervention management.

The company offers end-to-end data management services to support data strategy, ingestion, normalization, quality, security, governance, visualization and data architecture development and deployment via agnostic tools and flexible delivery models.

The company’s acquisition of Clairvoyant AI, Inc. (Clairvoyant) in December 2021 strengthened its data analytics capabilities with additional expertise in data and product engineering, machine learning operations, cloud enablement and managed services.

Business Strategy

EXL is a leading data analytics and digital operations and solutions company and is a key strategic partner for data-led businesses. The company drives business outcomes for its clients through advanced analytics and AI/ML-powered digital solutions on the cloud. The key elements of the company’s strategy include expanding its services in large addressable markets; integrating its data-led and domain capabilities; cultivating long-term relationships and expanding its client base; optimizing its global delivery footprint and operational infrastructure in the countries and regions in which it operates; and pursuing strategic acquisitions and relationships.

Sales, Marketing and Client Management

The company markets its services to its existing and prospective clients through its sales and client management teams, which are aligned by industry verticals and cross-industry domains such as finance and accounting and consulting. The company’s sales and client management teams operate from the U.S., Europe, Australia and South Africa are supported by its business development teams.

The company’s sales, marketing and business development teams are responsible for new client acquisitions, public relations, relations with outsourcing advisory companies, analyst relations, lead generation, knowledge management, content development, campaign management, digital or web presence, brand awareness and participation in industry forums and conferences. The company’s professionals generally have significant experience in consulting, analytics, digital operations and solutions services and digital technology within its focus industries.

Clients

The company generated revenues from approximately 550 clients in 2022. The company has won 59 new clients during 2022.

Competition

The company competes primarily against:

large global companies with digital operations and solutions and operations capabilities, such as Accenture, Cognizant Technology Solutions, Genpact Limited, IBM, Infosys, NTT DATA, Tata Consultancy Services, and WNS (Holdings); and niche industry-specific digital operations and solutions providers such as Cotiviti and Optum Health;

Intellectual Property

The company has a registered, and have applied for the registration of, numerous U.S. and international trademarks, service marks, and domain names to protect its brands, including its EXL brand, which is one of its most valuable assets.

Information Security and Data Privacy

The company takes into account guidelines from relevant regulatory and governance bodies, including but not limited to the Cyber Security Framework of the National Institute of Standards and Technology of the U.S. Department of Commerce, in designing policies and controls regarding security of sensitive and confidential information of its clients, employee, partners, third parties, as well as its intellectual property and confidential information. The company has undertaken measures designed to comply with all applicable privacy laws and regulations, including the European General Data Protection Regulation (EU) 2016/679 (GDPR), the U.S. Health Insurance Portability and Accountability Act of 1996, as amended, the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (the CPRA), the Virginia Consumer Data Protection Act (VCDPA), the Colorado Privacy Act (CPA), as well as other national and state laws or regulations.

Some of the company’s centers in the Philippines and South Africa and certain client processes in other operation centers in India are compliant with the Payment Card Industry Data Security Standard (PCI-DSS) version 3.2 or higher requirements.

Environmental, Health and Safety

All of the company’s delivery centers worldwide are ISO 45001:2018 certified, meeting international standards for occupational health and safety, and all of the company’s delivery centers in India and the Philippines are ISO 14001:2015 certified, meeting international standards for effective environmental management systems.

Regulation

The company provides third-party administrator insurance services from India and the Philippines and is able to provide such services in the United States for 49 states and 48 states (and the District of Columbia), respectively by location. Additionally, its subsidiary in the Philippines is able to provide utilization review services in the United States for 47 states (and the District of Columbia).

The company’s facilities in the Philippines, as well as one domestic subsidiary, are accredited by the Utilization Review Accreditation Commission (URAC) and National Committee for Quality Assurance (NCQA), the leading healthcare and education accreditation organizations. The company continues to obtain licenses and accreditations required from time to time by its business operations.

History

ExlService Holdings, Inc. was founded in 1999. The company was incorporated in Delaware in 2002.